A Canvas Business Strategy typically refers to the Business Model Canvas (BMC), a strategic management tool for visualizing and developing business models. Created by Alexander Osterwalder, it provides a structured and comprehensive way to analyze and plan a business strategy. Below are its key components:
9 Building Blocks of the Business Model Canvas
- Customer Segments
- Define your target audiences or different groups of people or organizations your business aims to serve.
- Example: B2B clients, individual consumers, niche markets.
- Value Propositions
- Specify the unique value your product or service delivers to customers.
- Example: Faster delivery, superior quality, cost-effectiveness, or innovation.
- Channels
- Identify how you deliver your products/services to customers and communicate with them.
- Examples: online platforms, physical stores, and partnerships.
- Customer Relationships
- Explain how you establish and maintain relationships with different customer segments.
- Example: Personal assistance, self-service, or loyalty programs.
- Revenue Streams
- Describe how the business earns money.
- Example: Product sales, subscription fees, licensing, or ad revenue.
- Key Resources
- Identify essential assets for the business to function.
- Examples: physical resources (buildings), intellectual property, and human resources.
- Key Activities
- Highlight the critical tasks needed to deliver the value proposition.
- Example: Manufacturing, software development, or marketing.
- Key Partnerships
- List external companies or suppliers your business collaborates with to deliver its value.
- Example: Suppliers, distributors, or strategic alliances.
- Cost Structure
- Summarize all significant costs and expenses associated with operating the business.
- Examples: fixed costs, variable costs, or economies of scale.
Using the Business Model Canvas
- Strategic Clarity: Helps businesses clearly define their operations and where they need improvements.
- Team Collaboration: Provides a visual and concise framework for teams to brainstorm and align strategies.
- Flexibility: This can be adjusted as market demands or business priorities shift.
- Customer-Centric: Focuses on delivering value to target audiences effectively.